SHANGHAI, Jan. 11 (SMM) - LME zinc prices overnight plunged at the end of trading, rolling back intraday gains. SHFE 1304 zinc contract prices opened lower at RMB 15,410/mt, rebounding to RMB 15,470/mt after briefly dipping to RMB 15,400/mt in the morning trading. China’s trade totaled USD 31.6 billion in December, much higher than the USD 20 billion expected. As a result, the Shanghai Composite surged, and SHFE 1304 zinc contract prices inched up. As LME zinc prices soared in the afternoon, and combined with mounting long momentum, SHFE 1304 zinc contract prices advanced and broke through the 5-day moving average, touching RMB 15,530/mt, and finally closed at RMB 15,525/mt, up RMB 95/mt. Total position increased by 2,898 lots to 94,314 lots.
SHFE three-month zinc contract prices edged up today. Discounts of #0 zinc against SHFE three-month zinc contract prices were RMB 310-330/mt, with traded prices between RMB 15,120-15,140/mt. #1 zinc prices were RMB 15,100-15,110/mt. Goods supply tightness kept #1 prices firm, with price spread against #0 zinc narrowing. A few smelters still lacked interest to move goods. Despite pessimism, some arbitrage traders purchased goods due to low discounts. But downstream buyers were still cautious, keeping overall transactions muted.
